Rhonda Haskins, CPA, Chief Financial Officer
Fayetteville Public Works Commission
Fayetteville Public Works Commission
Learn about the latest News & Events for FPWC, and sign up to receive news updates.
Add this issuer to your watchlist to get alerts about important updates.
Learn about the latest News & Events for FPWC, and sign up to receive news updates.
Fayetteville, NC- The Fayetteville Public Works Commission (PWC) recently received national recognition for financial reporting with two awards from the Government Finance Officers Association (GFOA). The first award was for the Distinguished Budget Presentation Award, the highest form of recognition given for governmental budgeting by the GFOA. This is the 29th consecutive time PWC has received this award. In May, PWC was awarded the Certificate of Achievement for Excellence in Financial Reporting for the July 2022 to June 2023 Fiscal Year. This is the 17th year PWC has received this Certificate of Achievement.
“I am proud the Government Finance Officers Association has recognized PWC with these two awards and the hard work PWC has put in to earn them,” said Timothy Bryant, CEO/General Manager of Fayetteville PWC. “Transparency is an important component in fiscal responsibility and speaks to our core values of committing to excellence and doing the right thing.”
“I would like to take a moment to thank the members of the finance team for their hard work and attention to detail in helping us achieve these awards,” said Rhonda Haskins, Chief Financial Officer of PWC. “These reports and budget presentations are more than financial statements, they serve as a policy document, a financial plan that guides operations, and a way to provide important information to our customers.”
The GFOA established the Certificate of Achievement for Excellence in Financial Reporting Program in 1945 to encourage and assist state and local governments to go beyond the minimum requirements of generally accepted accounting principles to prepare annual comprehensive financial reports that evidence the spirit of transparency and full disclosure and then to recognize individual governments that succeed in achieving that goal.
The Distinguished Budget Presentation Awards Program was established in 1984 to encourage and assist state and local governments to prepare budget documents of the very highest quality that reflect both the guidelines established by the National Advisory Council on State and Local Budgeting and the GFOA’s best practices on budgeting and then to recognize individual governments that succeed in achieving that goal.
PWC has been providing utility services since 1905 to Fayetteville and surrounding communities. Currently, PWC provides more than 274,101 services including electric, water, wastewater, and irrigation. PWC’s 650 employees are responsible for maintaining more than 1,400 miles of power lines and 2,825 miles of water and wastewater infrastructure. PWC’s Annual Operating Budget this year is $428.8 million. The bond ratings for PWC are Aa2 with Moody’s and AA with both Standard & Poor’s and Fitch.
Fayetteville, N.C.- Twelve line workers from the Fayetteville Public Works Commission (PWC) are leaving on June 1st to spend two weeks to help build electric infrastructure within the Navajo Nation. In this region on the country, there are thousands of families whose homes have never had electricity. This is the second year that PWC workers have participated in the mutual aid effort, Light Up Navajo, a collaborative effort organized by the American Public Power Association.
“Last year, our crews were moved by the direct and immediate impact their work had on the lives of the 13 families who finally had access to electricity in their homes,” said Jonathan Rynne, PWC’s Chief Operations Officer for the Electric Systems Division. “Despite the challenges of working in a desert environment with rocky soil, each of the crews came back sharing stories about their experiences and were touched by the kindness and appreciation shown to them while they were there.”
The project has brought together crews from across the country since 2019 to support the Navajo Tribe Utility Authority (NTUA) in their efforts to make sure every member has access to electricity. NTUA is a public power provider and its 27,000 square mile service territory covers four western states. Within the vast service area, there are over 13,000 families that still do not have basic access to electricity, water, or broadband internet.
“I would like to thank our Linemen for volunteering to represent the PWC team as they bring public power to those who truly need it most in the Navajo Nation” said Timothy Bryant, CEO/General Manager of Fayetteville PWC. “This speaks to the dedication of our crews and their volunteerism as they support this life-changing project. Their commitment to service is truly exceptional.”
Last year, PWC workers were a part of Light up Navajo IV which included 26 crews from 16 states who connected 130 families to electric service.
PWC’s Fleet Maintenance Department has been recognized for outstanding operations by the National Association of Fleet Administrators with their Top 100 Fleets in America Award for the second year in a row. PWC ranks as #26, up from #30 last year. NAFA’s 100 Best program identifies and encourages the ever-increasing levels of performance improvement and innovation within the fleet industry. The goal of the 100 Best is to foster pride in the industry, build recognition within the national fleet community, increase levels of productivity and operational effectiveness, and to encourage more individuals to consider fleet operations as a career choice.
To be considered for this distinguished award, PWC was evaluated on Fleet composition, management, and overall operations. Applicants had to demonstrate excellence in 12 key areas:
Accountability
Use of Technology & Information
Collaboration
Creativity
Performance Recognition and Celebration
Evidence of a High Trust Culture
Financial Management
Doing it Right the First Time
Quick Efficient Turnaround
Competitive Pricing
Staff Development
Resources Stewardship
PWC earned distinction in Use of Technology and Information, Staff Development, and Financial Management this year. Several years ago, Chief Administrative Officer Susan Fritzen set a goal for Fleet to become a Blue Seal Shop, the gold standard of any automotive operation. Since then, the staff has been working diligently to get there and has accomplished the following:
As part of their commitment to continuous improvement, PWC’s Fleet staff collaborate with other fleets from across the country, NAFA, and other professional organizations to conquer challenges the industry is facing, including high costs of vehicles, parts, and outsourced services; keeping up with everchanging technologies; and sustainability through new initiatives and creativity. Fleet will also join others across the country in celebrating National Automotive Service Professional Month in June.
Congratulations to Fleet on this much-deserved accomplishment!
On Apr. 17, 2024, the United Way of North Carolina presented their Spirit of N.C. Awards to organizations from around the state who not only demonstrated excellence in their United Way campaign but are building a philanthropic culture community-wide.
PWC earned this year’s award for Impactful and Engaging Campaign Event or Activity – a Meal Packing Event that officially kicked off its 2023 pledge campaign. Eighty employees helped pack over 35,000 meals in just under an hour that were used by three food pantries: Fayetteville Urban Ministries, Armed Services YMCA at Fort Liberty, and Catholic Charities. PWC’s 2023 campaign raised $138,678, a 5% increase over 2022, and surpassed its campaign goal of $135,000. PWC also had a record number of leadership givers with 52. The meal-packing participants contributed 36% of PWC’s overall campaign ($49,000+) and added five new leadership givers.
It is the 18th Spirit Award PWC has earned since 2003. PWC has earned more Spirit Awards than any other organization in the state.
On Apr. 12, 2024, PWC and Cumberland County announced a partnership to expand PWC’s current water system to provide drinking water to the Gray’s Creek Water and Sewer District. This partnership will help address the widespread GenX contamination of groundwater throughout the county.
The collaboration underscores a commitment from both organizations to safeguarding public health and strengthening community well-being.
“Today is truly a monumental day in the history of Cumberland County,” said Board of Commissioners Chairman Glenn Adams. “While this problem was not created by the County, the Cumberland County Board of Commissioners has been committed since the beginning to addressing this issue for our citizens – who deserve access to regulated, reliable, safe drinking water.”
Cumberland County’s efforts to address the GenX contamination have focused on developing deep wells, treatment facilities, and distribution lines in Gray’s Creek. However, the commissioners have determined it is in the best interest of residents to change the scope of the project and partner with PWC to expand the utility’s current water system to provide source water and service to the Gray’s Creek District.
“Since forever chemicals were first discovered in the Cape Fear River, PWC has been at the forefront of treatment options and continued advocacy to prevent contaminants like GenX from being discharged into our source water,” said PWC CEO Timothy Bryant. “That commitment has not changed. All citizens deserve high quality water to drink, and we are proud to partner with the County to provide that valuable resource to Gray’s Creek as quickly and cost-effectively as possible.”
PWC and the County will work together to plan for, seek funding for, develop a schedule, and implement the installation of water system infrastructure, starting with service to the Gray’s Creek and Alderman Road Elementary Schools. The General Assembly appropriated $12 million to PWC to design and build water to the two schools.
The plan to get water to the schools as soon as possible is to make use of existing preliminary design work. To expedite the project, PWC will utilize/revise an existing design from 2021. Once installed, PWC will provide quality drinking water in keeping with the high standards set by the Partnership for Safe Water and all other requirements set by the United States Environmental Protection Agency (EPA).
The County plans to utilize American Rescue Plan Act (ARPA) funding to help extend the water system to other areas within the Gray’s Creek Water and Sewer District and will work with residents within the district to find funding for connection fees. With the shared responsibility of this project with Cumberland County, this should have no impact on existing PWC customers.
“My fellow PWC Commissioners and I are proud to be able to help PWC and the County form this partnership for the benefit of our citizens,” said PWC Commission Chair Donald Porter. “Our Gray’s Creek community deserves access to high quality drinking water and together we can get the job done.”
PWC was the first utility in North Carolina to be recognized with the Partnership for Safe Drinking Water’s Director’s Award for treatment efforts that exceed US EPA requirements and have maintained those standards for 23 consecutive years.
This announcement comes just two days after the EPA was at PWC’s P.O. Hoffer Water Treatment Facility to announce new national drinking water standards to address forever chemicals like GenX in drinking water. New standards became effective April 10, 2024. PWC is currently upgrading its two drinking water treatment facilities to add Granular Activated Carbon (GAC) filtration that will enable PWC to continue providing drinking water that meets or exceeds EPA standards.
On Apr. 10, 2024 at the P.O. Hoffer Water Treatment Facility, PWC was proud to host U.S. Environmental Protection Agency (EPA) Administrator Michael Regan’s announcement of the first-ever national, legally enforceable drinking water standard to protect communities from exposure to harmful per-and polyfluoroalkyl substances (PFAS), also known as ‘forever chemicals.’
This final rule represents the most significant step to protect public health under EPA’s PFAS Strategic Roadmap. The final rule will reduce PFAS exposure for approximately 100 million people, prevent thousands of deaths, and reduce tens of thousands of serious illnesses.
The EPA is also making unprecedented funding available to help ensure that all people have clean and safe water. In addition to today’s final rule, EPA is announcing nearly $1 billion in newly available funding through the Bipartisan Infrastructure Law to help states and territories implement PFAS testing and treatment at public water systems and to help owners of private wells address PFAS contamination. This is part of a $9 billion investment through the Bipartisan Infrastructure Law to help communities with drinking water impacted by PFAS and other emerging contaminants – the largest-ever investment in tackling PFAS pollution. An additional $12 billion is available through the Bipartisan Infrastructure Law for general drinking water improvements, including addressing emerging contaminants like PFAS.
For nearly 10 years, PWC has been a leader in the Cape Fear River basin, advocating for the protection of the Cape Fear River through the reduction and prevention of the discharge of industrial pollution/PFAS into the river, our primary drinking water source.
Regan commended PWC’s efforts to address PFAS contamination. “This water treatment facility right here has been on the frontlines finding ways to reduce PFAS exposure,” Regan said. “And cities like Fayetteville are showing that together we can get the job done.”
Three employees from the Fayetteville Public Works Commission (PWC) were recently recognized by the North Carolina Waterworks Operators Association (NCWOA) for their commitment and dedication to water quality. PWC employees serve a vital role in providing drinking water that meets and exceeds state and federal standards for water quality.
This year’s recipients include:
• Del Coffman – 2023 Outstanding Operator of the Year
With more than 28 years of service in the industry, Del Coffman started out as a meter reader before making his way up to a Senior Treatment Facility Operator at the Glenville Water Treatment Facility. He is known for actively seeking out training to improve his knowledge of operations and sharing his expertise with the next-generation of operators. Coffman was also recently recognized with the Thomas C. Flowers Award for his dedication and support of the NCWOA Southeast Section.
• John Cummings – 2023 C-Surface Operator of the Year
John Cummings has served in the industry for 2 years after transitioning from the military through the Army’s Career Bridge Program. Cummings quickly excelled at learning to be an operator and serves as an example of how new operators should strive to be.
• Jason Green – 2023 Educator of the Year
Jason Green has been an NCWOA member for 22 years and currently is the Water Treatment Facility Manager for PWC. Green is a member of the Board of Examiners and has taught classes for Operator Certification and Specialized Training since 2006, teaching nearly every class related to water operation education.
“I cannot be more proud of the accomplishments of PWC’s water resources division,” said PWC CEO, Timothy Bryant. “Their leadership and commitment to serving our customers is the reason PWC is recognized as a leader in the state and nation in providing exceptional services.”
“These achievements spotlight the highly capable PWC employees who operate our water treatment plants in an exemplary manner,” said Mick Noland, Water Resources Chief Operations Officer for PWC. “They also give back to the profession by teaching aspiring operators the fundamentals they need to know in order to serve their communities.”
Please join us in congratulating these employees. We thank them for their hard work and devotion to water quality. Fayetteville PWC operates two water treatment facilities and treats around 10.7 billion gallons of drinking water a year. PWC has been recognized with the Director’s Award 21 years in a row by the Partnership for Safe Water, a voluntary initiative for enhancing water treatment to provide higher quality drinking water.
PWC is one of 15 public power communities across North Carolina to receive a 2022 Public Power Award of Excellence. ElectriCities of North Carolina, Inc., presented 15 North Carolina communities with Public Power Awards of Excellence at ElectriCities’ 2023 Annual Conference held in Myrtle Beach, South Carolina.
“I am proud to have joined an organization that has such a tremendous history of excellence and especially proud of our employees’ unwavering dedication and the pride they take to providing safe, reliable, and affordable power to our community,” said Tim Bryant, PWC CEO/General Manager “Being powered by a municipally owned electric system is a tremendous benefit to Fayetteville and to our customers. It enables us to deliver more reliable service than other providers, as well as local jobs and unmatched customer service.”
PWC received public power awards in five categories that align with ElectriCities of NC’s strategic priorities:
Provide Superior Power: Highlights utilities that deliver reliable, affordable and substantial electric power. PWC was recognized for its implementation of demand response programs, Time-of-Use Electric Rates; Renewable Energy with its Community Solar program and utilization of battery storage and it’s outstanding reliability. PWC has been recognized by the American Public Power Association six times with the APPA’s highest reliability designation (Reliable Public Power Provider; RP3- Diamond Level)
Future Focused: Recognizes utilities for having a future-focused mindset and long term strategic plan & data driven approach toward improving the competitiveness of their utility PWC aspires to be known as the best utility in the United States. It’s Strategic Plan includes extensive Key Performance Indicators, and PWC’s customer satisfaction initiatives and surveys include benchmarking PWC against other high performing utilities.
Strengthen Public Power: Celebrates utilities that build public and political support of public power. Each year, PWC hosts outreach that educates customers and the community on Public Power such asPWC Day and the PWC Expo. For over 20 years, PWC has utilized customer feedback and insight through its Community Advisory Group.
Customer-Centered Innovation: Celebrates utilities that innovate and invest to better serve their customers and communities.In 2022, PWC introduced the Energy Resource Center and email video bill explanations that provide customers additional information and understanding of their utility use.
People: Recognizes utilities that leverage their people as their greatest assets.PWC has formal succession planning, internship programs, PWC University (organizational development & training) as well as offers educational assistance programs and partners with community organizations, such as FTCC to develop future workforce.
“There is tremendous value in public power, and this year’s Public Power Awards of Excellence recipients are going above and beyond to demonstrate that value and move public power’s future forward,” said ElectriCities CEO Roy Jones. “These awards demonstrate the connection city/town has in prioritizing local needs, putting their customers first using innovative solutions that provide safe, reliable power, and leveraging their workforce to provide exceptional service to the community. I’m honored to recognize city/town and the public power employees who put in the hard work each day to power their neighborhoods.”
Nearly 1.3 million people in more than 70 cities and towns across North Carolina get their electricity from public power providers. Since these public power communities own their electric system, they maintain local control and decision making over their operations, providing unbeaten reliability and support for their local economy.
About ElectriCities of North Carolina
ElectriCities of North Carolina, Inc., is the membership organization that provides power supply and related critical services to over 90 community-owned electric systems in North Carolina, South Carolina, and Virginia—collectively known as public power. ElectriCities manages the power supply for two power agencies in North Carolina and provides technical services to assist members in operating their electric distribution systems. ElectriCities also helps these locally owned and operated public power providers thrive today and in the future by delivering innovative services, including legislative, technical, communications, and economic development expertise. Visit www.electricities.com to learn more about the benefits of public power and how ElectriCities helps communities keep the lights on through access to safe, reliable, and affordable energy.
In June 2023, Lineworkers Cameron Phipps, Stone Johnson, Dustin Britt, Marshall Jackson, James Deans, Cody Jonaitis, Lamar Hunt, Jonathan Bullard, Austin Hawley, & Adam Daughety traveled to Arizona to participate in the Light Up Navajo IV project- an ongoing humanitarian mutual aid project that is providing electric service to members of the Navajo Indian reservation who do not have electricity. Since 2019, American Public Power Association utility members have partnered with the Navajo Tribal Utility Authority (NTUA) on the initiative. Learn more about Light Up Navajo
Please see the below link to view news regarding Fayetteville's Public Work Commission.
PWC’s Fleet Maintenance has been recognized for outstanding operations by the NAFA Fleet Management Association. PWC was named #30 Best Fleet operations of the Top 100 in America.
The 100 Best program identifies and encourages the ever-increasing levels of performance improvement and innovation within the fleet industry. The goal of the 100 Best contest is to foster pride in the industry, build recognition within the national fleet community, increase levels of productivity and operational effectiveness, and to encourage more individuals to consider fleet operations as a career choice.
PWC was rated on 12 performance measures to ultimately be named the 30th best operation. PWC received its highest marks in Creativity, Use of Technology and Information, Staff Development, and Resources Stewardship. Other criteria included: Accountability, Collaboration, Celebration, Evidence of a High Trust Culture, Performance Recognition, Doing It Right the First Time, Quick Efficient Turnaround, and Competitive Pricing.
Fleet is also celebrating Automotive Service Excellence Week – or Fleet Week – June 5-11.
Congratulations Fleet!
At PWC, we care deeply about the quality of the water we provide for our customers, and we’re proud of the exceptional standards we maintain. Each year we publish a “Water Quality Report” with the results of testing we are required to perform. You can find full details of this report on our website – www.faypwc.com/water-quality-report.
However, we don’t test our water just because we “have to.” It’s part of our unparalleled commitment to provide you with the highest quality drinking water that meets and surpasses regulatory requirements.
Recently, a Tesla brand Mega Battery pack was put into operation at the PWC’s Solar Farm. The battery is located on the property of the Butler-Warner Generation Plant. The project took one year to complete and will help save customers approximately $500,000 annually in power generation costs.
The Fayetteville Public Works Commission took action Wednesday that maintains PWC’s current base electric rates, reduces customer fees, introduces optional electric rates that will offer customers’ choice and continue to support PWC conservation efforts as well as support economic development.
“PWC is pleased to be able to hold our customers’ base electric rates steady, reduce certain fees and offer new optional rates that can help customers save energy and money,” said Elaina Ball, PWC CEO/General Manager. “Electricity use and technology are rapidly changing, and we are excited to provide options to our customers that will encourage the adoption of new technologies such as roof top solar and electric vehicles.”
PWC’s new optional Whole Home/Business rate will provide additional incentive for off peak energy use by introducing a new super-off-peak rate, that is 50% less that PWC’s current off-peak electric rate.
Available in February 2023, customers will have the option to sign up for the new rates, pay a slightly higher basic facility charge, but a pay a significantly lower rate for energy use weekdays from 9pm-5 am. The rate supports PWC’s continuing efforts to reduce energy demand costs and provides options for electric vehicle owners to charge during low demand hours that lessen EV impacts on the electric system.
PWC introduced Time of Use electric rates in 2019 to help decrease energy demand costs and apply the same pricing structure to energy that PWC pays Duke Energy, its wholesale power-supplier. During ‘peak’ weekday usage on the electric system, power demand costs are significantly higher than other times of the day. Shifting energy use outside of the peak hours, helps PWC lower over-all power costs and maintain reasonable rates.
Also effective in February 2023, PWC will offer a new Renewable Energy Buy Back rider for customers who install roof-top solar. The rate will be available for residential and small power customers generating 10 kW or less of energy. The rate will accompany bi-directional metering and replace PWC’s current buy-all, sell-all rates for roof top solar.
During their rate action, PWC adopted a new economic development rate for customers who bring 1,000 kW loads to the PWC system or 750kW through expansion. The discounted rate, effective in September, includes employee and/or capital investments along with other requirements and adds another economic development tool for the community to attract new business or encourage expansion.
Also in effective in September, PWC is changing its demand and energy rate for Medium Power Service customers to continue PWC efforts to manage high energy costs because of peak hour usage. The rate lowers the demand threshold from 200 to 150 kW and has a 15% lower kwh charge. Customers currently in the rate classification will have the option to enroll to the new rate in September. The new rate will be applied all Medium Power Service Customers in September 2023.
In other changes, PWC lowered fees for connection, reconnection, and meter testing, passing along savings achieved by new technology and operations.
PWC and Bloom Energy (NYSE: BE), a leading distributed energy company, announced Thursday plans to install and operate 1.5 megawatts of solid oxide fuel cells. Creating renewable energy from multiple biogas streams in the region, the new project will reduce emissions and advance the Fayetteville community’s efforts to meet North Carolina’s clean energy standards.
Bloom Energy’s fuel cells combine ambient air with fuel, such as biogas, to create electricity without combustion. Generating power from multiple biogas streams, the fuel cell installation – to be located adjacent to PWC’s P.O. Hoffer Water Treatment Facility – will be one of the first of its kind to blend multiple waste gas sources to produce clean, carbon-neutral electricity. The project will use biogas captured from PWC’s Cross Creak Water Reclamation facility, an adjacent landfill, and methane gases captured from local and neighboring swine farms.
As nations and cities continue to grow and urbanize, waste generation is expected to increase by 70 percent by 2050. Currently, waste gas generated from the wastewater treatment process and landfills is flared, a commonly used and controlled method for releasing the gas into the atmosphere, which contributes to air pollution. By reducing biogas flaring at the wastewater and landfill facilities, local emissions are averted, helping to improve air quality. The project will also use methane — a potent greenhouse gas that accounts for 50 to 70 percent of biogas – from swine farms that would otherwise be released into the atmosphere.
By utilizing multiple biogas streams, the waste-to-electricity project will provide reliable, always-on, and carbon-neutral electricity to meet the power demands equivalent to more than 1,000 homes. Bloom Energy’s fuel cells will complement PWC’s existing renewable energy sources, helping meet PWC’s North Carolina Renewable Energy and Energy Efficiency Portfolio Standard requirements.
“PWC is excited to collaborate with Bloom Energy to bring a first-of-its kind clean energy project to our community to serve our customers,” said Elaina Ball, CEO and general manager, PWC. “This project is an anchor for the broader plan to remediate and establish a Cleanfields Renewable Energy Demonstration Park in the community.”
“Producing resilient and renewable energy from waste sources is a critical component of decarbonized and sustainable circular economy,” said Chuck Moesta, vice president, gas, Bloom Energy. “Our waste-to-energy solutions are garnering increasing interest from communities and municipalities. We look forward to bringing this innovative project alive with Fayetteville’s municipal utility, setting an important example for other communities around the U.S. wishing to transition to clean, carbon-neutral energy.”
“This is an innovative project that addresses both our challenging renewable energy mandates and one of the state’s largest industrial polluted sites,” said Ball. “We are excited that the project not only brings creative solutions but numerous other benefits including producing renewable energy, cutting power costs and productive use of local waste gases.”
The project will also complement the cleanup of industrial pollution that has threatened the Fayetteville community for more than two decades. Located adjacent to PWC’s P.O. Hoffer Water Treatment Facility, the fuel cell installation will also border the former Texfi industrial site, which is considered one of North Carolina’s most polluted sites due to residual industrial pollution and contaminated groundwater that poses a threat to the community’s drinking water and the Cape Fear River Basin.
After seeking funds since the early 2000s, the City of Fayetteville and PWC received $220,000 in funding from the state to help launch a pilot program for removing the contaminated groundwater, which is now underway. PWC is also contributing an additional $220,000 for the project. If proven successful, the pilot technology will be utilized in full-scale remediation efforts. Once cleaned up, plans call for a 250-acre park to be developed into the state’s second Cleanfield Renewable Energy Demonstration Park, where renewable energy resources like Bloom Energy’s fuel cells will be located.
Fayetteville PWC has issued $94.79 million of revenue bonds at an interest rate of 2.278%, the lowest rate ever achieved by PWC outside of state lending. Citigroup Global Markets Inc. was the successful purchaser of the bond series and the PWC funding closed on Thursday November 4, 2021.
PWC issued their Series 2021 Bonds to fund improvements to its electric, water and wastewater utilities, including $22 million to fund continued work to retrofit utilities in the City of Fayetteville’s Phase V annexation area.
“The low cost of borrowing helps PWC maintain highly-reliable utility services and demonstrates the strength of Fayetteville’s utility system and its management,” said PWC CEO/General Manager Elaina Ball. “When we can fund continued system improvements through low-cost borrowing, it ensures we can continue to provide reliable utility services while also managing our customers’ costs. “
The bonds represent PWC’s continued investment in our electric, water and wastewater systems to support growth, reliability, water quality and compliance according to Ball. “The investment continues to address PWC’s multi-year plan of rehabilitation and replacement of aging infrastructure to ensure safe and reliable services for our 118,000 customers.”
Overall, $90 million of the bond funding is dedicated to PWC’s water and wastewater system. PWC will use $48 million to replace, upgrade and rehabilitate system mains, manholes and lift stations throughout it’s more than 2,500 miles of water and sanitary sewer system. Over $10 million will fund back up generation at PWC’s water and wastewater treatment facilities for storm readiness. Backup generators have been critical when hurricanes caused extended power outages and flooding.
PWC’s Rockfish Water Reclamation facility will receive $8.2 million to fund Plant improvements and expansion plans in support of community growth.
The PWC Electric system will use over $7 million of the bond funds to replace one of PWC’s 30 electric substations and fund the expansion of PWC’s Battery storage system at its Community Solar farm by 1.5 Megawatts.
“PWC received favorable bond ratings by all three rating agencies which underpins our credit-worthiness and keeps our cost of capital low, “said Ball. “Utilities required a substantial amount of capital to keep up with growth, replace aging infrastructure and maintain the reliability of their systems. Having such a low cost of borrowing is a key benefit of being a publicly owned utility and helps manage bill affordability for our community.”
Moody’s, S&P and Fitch Rating agencies all affirmed PWC’s AA stable financial ratings during the bond issuance process.
Moody’s assigned PWC an Aa2 rating in a statement that noted PWC’s financial position will remain sound given its long-standing history of conservative budgetary practices and asset management.
Fitch Ratings assigned and affirmed PWC’s “AA” rating based on PWC’s very strong financial performance characterized by very low leverage, strong operating cash flow and healthy liquidity.
S&P assigned PWC its ‘AA’ long-term rating stating key factors supporting the ratings include PWC’s deep and diverse service area, credit supportive policies and robust financial metrics. S&P viewed PWC as having “a very strong operational and management assessment, highlighted by an experienced a sophisticated management team engaged in credit-supportive planning and in adopting a robust set of financial policies and reserves. “
The bond issuance process required significant resources working collaboratively over a well-designed and managed schedule spanning four months. Lead by PWC and City of Fayetteville Executive, Finance and Legal Staff, the process required several external resources.
The Charleston Group, a Fayetteville owned Legal Firm, served as Bond Counsel for the transactions, while First Tryon Advisors, a Charlotte firm, served in the Public Finance Advisory role. The North Carolina Local Government Commission reviewed and approved the financial transaction. The Bank of New York Mellon Trust Company served as Trustee and Disbursement Agent securing the project and debt service funds over the life of the bonds.